Session 5
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Session #5. Loan and Grant Funding and Cash Management Direct Loan, Pell Grant, Teach Grant, Iraq and Afghanistan Service Grant (IASG), and Campus-Based Programs Anthony Laing LaShae Jones Michael Falby U.S. Department of Education. Agenda. Title IV Funding Commonalities

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Session 5

Session #5

Loan and Grant Funding

and Cash Management

Direct Loan, Pell Grant, Teach Grant, Iraq and Afghanistan Service Grant (IASG), and Campus-Based Programs

Anthony Laing

LaShae Jones

Michael Falby

U.S. Department of Education


Agenda

Agenda

  • Title IV Funding Commonalities

  • Title IV Programs

    • Direct Loan

    • Pell Grant

    • TEACH Grant

    • Iraq and Afghanistan Service Grant (IASG)

    • Campus-Based Programs

  • G5


Title iv funding commonalities

Title IV Funding Commonalities

  • Cash requested and returned through G5

    • Banking

    • Funds associated with school’s DUNs number

  • Funds are award year and program specific

  • Managing FSA funds

    • 3-day rule

    • 30-day reporting requirement

    • Reconciliation requirements


Follow the money

Follow the Money

COD

eCB

Disbursement

Records / FISAP

Payment Data

Payment

G5


G5 obtain title iv funds

G5 – Obtain Title IV Funds

  • Department of Education’s payment system

  • Provides location for all school payment processes

    • Drawdowns

    • Drawdown adjustments

    • Refunds

    • G5 funding reports

5


Bank accounts

Bank Accounts

  • G5 must have a designated bank account to which it can send Title IV cash

  • Schools may establish one or multiple federal funds bank accounts

    • Must be able to identify different types of Title IV funds

  • Designate a bank account for processing refunds


Grantee vs payee duns

Grantee vs. Payee DUNS

Typically Grantee and Payee DUNS numbers are the same.

Variance occurs when a Grantee selects another DUNS to manage their payment/refund/adjustment requests.


Session 5

DUNS Registration

  • Register DUNS at Central Contractor Registration

    • www.ccr.gov

    • Allow five days for new registration process

    • Allow two days for renewal

  • Must renew within 12 months of your previous registration

  • Assistance with registration is available at CCR Federal Service Desk

    • Call: 866-606-8220

8


G5 award numbers

G5 Award Numbers

  • G5 Award Numbers are program

  • and award year specific.


Managing title iv funds

Managing Title IV Funds


Fiduciary responsibility

Fiduciary Responsibility

  • Schools have a responsibility to:

    • Safeguard FSA funds

    • Ensure FSA funds are used for intended purposes

    • Return funds on student’s behalf to loan programs

    • Return to ED funds that cannot be used as intended


Session 5

School must disburse Title IV funds to a student within three business days of receiving the funds in its federal funds bank account

Title IV funds that are not

disbursed before this deadline

are Title IV excess cash

Title IV Excess Cash


Session 5

Does not exceed 1% of prior year drawdown

Must return after seven days

Excess Cash Tolerance


Cash management

30-day reporting requirement

685.301(d) Direct Loan

Federal Register June 7, 2011 (Grants)

3-day cash rule

668.162(b)

Monthly reconciliation

685.102(b) Direct Loan

Cash Management


Recovery of unclaimed funds

Recovery of Unclaimed Funds

  • Student credit balance check mailed and comes back or EFT rejected

    • School has 45 days to either return funds to ED or to try to disburse again

    • May continue trying so long as unclaimed funds are returned to ED within 240 days of when check or EFT was issued

  • Student credit balance check mailed but is never cashed

    • School has 240 days to return funds to ED


Cod daily funding process

COD Daily Funding Process

Disbursement records drive

Current Funding Level (CFL)

Deadlines

10:30 a.m. ET in COD – Same day in G510:00 p.m. ET in COD – Next day in G5

16


Dl funding lifecycle

DL Funding Lifecycle


Dl funding methods

DL Funding Methods

  • Advance Funding/HCM1

    • Initial authorization - Spring

    • Subsequent increase late November

  • Foreign Schools

    • No initial authorization

    • Accepted actual disbursements increase funding

  • HCM2/Reimbursement

    • Funds requested by FSA


Dl funding example

DL Funding Example

  • Initial authorization

    • March/April 2012 for advance funded or HCM1 schools

    • Late June 2012 for all schools

  • Daily processing

    • Once COD accepts Direct Loan records for 2012-13

  • Monthly reconciliation

  • Closeout - July 31, 2014

    • Remaining available funds reduced to net drawdowns


Dl advance funded hcm1

DL Advance Funded/HCM1

  • Approximately 60-65% of the amount of the disbursement records on file from the previous year

  • Increase in mid-year

  • Need additional funds?

    • Send in actual disbursements up to seven days in advance

    • Call COD Customer Service to request an increase (must not have any unsubstantiated funds)


Dl funding information

DL Funding Information

  • Funding can be at the location level

    • Example: Gcode or Ecode

  • Award in G5 is specific to the Direct Loan school code that originated the loan

  • Actual disbursements will only be accepted if origination record is linked to an active Pnote


Dl advance funding method

DL Advance Funding Method

  • Advance funding method

    • Request $, Credit, Report

    • Report, Request $, Credit

    • Credit, Report, Request $

  • Can report actual disbursements up to seven days in advance

  • Must report actual disbursements within 30 days of disbursement date

New DL Actual Disbursement Listing Available!


Dl reconciliation

DL Reconciliation

  • Monthly reconciliation required

    • Documentation of efforts

    • School Account Statement

      -YTD, monthly or both via SAIG

      -Cash, loan and disbursement detail by award year

  • School monitoring e-mail from COD


Dl reconciliation1

DL Reconciliation

  • Internal reconciliation

    • Comparison of Business Office records of funds requested, received, disbursed, and returned to Financial Aid Office records of funds awarded

  • External reconciliation

    • Comparison of reconciled internal records to ED’s records of loans originated and disbursed


Session 5

Monthly reconciliation

Compare your records with the Department’s to identify and account for discrepancies

Ending Cash Balance (ECB) allowable at $0

End-of-Year closeout

Ensure that all records are processed and all cash is accounted for and reconciled

ECB must = $0

DL Reconciliation vs. Closeout


Cod initiated activity for dl

COD Initiated Activity for DL


Pell grant funding lifecycle

Pell Grant Funding Lifecycle


Pell grant changes for 2011 12

Pell Grant Changes for 2011-12

  • No initial authorization (records first)

  • Elimination of two Pell Grants in one award year

  • Earlier acceptance of Pell Grant records

  • Cessation of ACG/SMART Grants


Cross over payment periods

Cross Over Payment Periods

  • Cross over payment periods

    • At least one day of the payment period must cross July 1st

    • Payment period May 1-Sept 30 may award and fund out of either award year

    • Must have a valid ISIR for that award year

Attention!


Pell grant processing

Pell Grant Processing

  • Funding is through the main campus only

  • Accepted actual disbursements drive funding

    • i.e. “records first”

    • Submit actual disbursements up to seven days in advance

  • Must resolve rejected records to increase funding

  • Reconciliation will be an ongoing process


Pell grant admin cost allowance

Pell Grant Admin Cost Allowance

  • Three times during an award year cycle

    For 2011-2012:

    March 2012

    August 2012

    August 2013

  • NO DRAWDOWNS

    • Payments sent directly to bank accounts by G5 for ACA only


Pell grant individual reductions

Pell Grant Individual Reductions

  • Potential Overaward Process (POP)

    • Occurs when more than one attended school reports disbursements for a student

    • COD system checks to make sure that the student has not received more than 100% of his/her eligibility

  • COD generates MRR to schools involved

  • Schools have 30 days to resolve

    • If not resolved, all Pell Grant funds for that student reduced at both schools for the entire award year


Cfl change global jobs

CFL Change - Global Jobs

  • Three program-wide reduction of CFL jobs

    • Pell Verification W Reduction

    • ACG and SMART G5 Net Drawdown Reduction

    • Pell G5 Net Drawdown Reduction

  • Why should you care?

    • Reduces available balance in G5 (unprocessed deobligation/excess cash)


Session 5

CFL Change - Global Jobs

34


Global job messages

Global Job Messages


Reduction to g5 net drawdown

Reduction to G5 Net Drawdown


Pell grant verification reduction

Pell Grant Verification Reduction

  • Students selected for verification and reported with a status of ‘W’ must be updated to either ‘S’ (selected but not verified) or ‘V’ (verified)

    • Warning of reduction

    • Reduction if code is not updated

  • Why should you care?

    • Negative Disbursement (ND) sent to school

    • Reduces available balance in G5 (unprocessed deobligation/excess cash)


Unprocessed deobligation

Unprocessed Deobligation

  • Excess cash

  • Created when a school submits or COD creates a decrease CFL transaction below the amount already drawn


Unprocessed deobligation1

Unprocessed Deobligation

  • Example for School ABC:

  • School submits a $1,000 decrease = a $1,000 UD

  • School must refund $1,000 to G5, or submit a correction record in COD


Session 5

Stay Reconciled

  • Each of the following should be equal…


Session 5

Stay Reconciled

  • Goal is to have a zero Pell Grant available balance for all award years

  • Always verify and compare both COD and G5 systems to see available balance


School funding information

School Funding Information

This is for a program year that should have been reconciled to zero.


School funding information1

School Funding Information

Reduction to Net Drawdown


G5 award balance

G5 Award Balance

G5 displays $0 current available

balance.


G5 external award activity

G5 External Award Activity

Notice the reduction to authorization for this 0809

award made on 3/16/2011


Pell grant reconciliation tools

Pell Grant Reconciliation Tools

  • Reconciliation file

    • Summary level by student

    • Mass e-mail to all schools in September

  • Year-to-Date (YTD) file

    • Disbursement level by student

    • Can be requested on the COD web or by contacting COD Customer Service

  • Message classes 2012/2013

    • Reconciliation: PGRC13OP

    • YTD: PGYR13OP


Closeout reconciliation

Closeout/Reconciliation

For Award Year 2011-12, schoolsshouldbe reconciled by September 30, 2012.

Must closeout within…

  • Pell Grant: Five years

  • ACG and SMART Grants:


Post deadline processing

Post-Deadline Processing

Post-deadline processing is provided for extended processing, audit adjustment, and resolution of POP situations.

  • By September 30, data must be submitted following the end of the award year in which the Pell Grant is processed

  • Schools request on the COD website - School menu

  • Request only when you are ready to submit


Teach funding lifecycle

TEACH Funding Lifecycle


Teach funding lifecycle1

TEACH Funding Lifecycle

  • No initial authorization - Records first

  • Recipient must complete TEACH Grant entrance counseling and new agreement to serve each year before disbursements will accept

  • Reconciliation similar to Direct Loans

    • SAS produced monthly

    • Year end close out September 30

    • Available balance reduced to net draws


Iasg funding lifecycle

IASG Funding Lifecycle

  • Iraq & Afghanistan Service Grant

  • School submits disbursement as anticipated on COD website (DRI= ‘false’)

  • FSA generates award in G5

  • Manual SOA generated

  • School creates payment request in G5

  • Reconcile SOA with G5

  • No COD initiated activity


Campus based lifecycle

Campus-Based Lifecycle


Ecampus based system

eCampus-Based System

eCampus-Based Homepage

https://cbfisap.ed.gov/ecb/CBSWebApp

Provides information on Perkins, FSEOG, and FWS


Fisap

FISAP

  • FISAP = Fiscal Operations Report and Application to Participate

  • Complete an online FISAP to:

    • Apply for campus-based funds for the coming award year

    • Report campus-based expenditures for the prior award year

  • FISAP deadline October 1


Campus based deadlines

Campus-Based Deadlines


Allocation of funds

Allocation of Funds

  • Based on statutory formulas and program funding

  • Tentative allocation posted in eCB in February

  • Final allocation information by April 1st

  • Unexpended funds must be released back to the Department

  • Federal share/non-federal Share (school funds)

    • FWS= 75% federal/25% non-federal

    • FSEOG= 75% federal/25% non-federal

    • Perkins= $0 Federal Capital Contribution (FCC)


Transfer of funds

Transfer of Funds

  • Up to 25% of the school’s FWS allotment to the school’s Perkins or FSEOG allotment

  • Any FWS funds transferred must be entered in G5 as an expenditure against the FWS program

  • Up to 25% of the school’s FSEOG allotment to the school’s FWS allotment


Carry forward carry back

Carry Forward/Carry back


Fsa initiated global jobs

FSA Initiated Global Jobs

  • April 2012 FISAP reduction to G5 net drawdown for award year 2010/11 scheduled for April 2012

  • Deobligations for 2011/12 and reallocations for 2012/13 scheduled for September 2012


G5 obtain title iv funds1

G5 – Obtain Title IV Funds

G5 Homepage

www.G5.gov

60


Additional g5 training

Additional G5 Training

  • G5 online training

    • Click on “Main”

    • Click on “Online Training”

  • Recorded G5 training module

    • http://ifap.ed.gov/dpcletters/ANN1032.html

    • Choose link for “Participation and Funding”


Create a payment request

Create a Payment Request


Session 5

Create a Payment Request

63


Automated e mail

Automated E-mail

John,

Requesting User ID: [email protected]

Your request made on 10/30/2009 for $100.00, has been received. Your control number is 2009103006381 and you will receive your funds on 10/30/2009 in bank account ****9426.

  • If you did not request this payment, please contact the Helpdesk at 1-888-336-8930.


Drawdown adjustments

Drawdown Adjustments

  • Cannot move more than has been drawn

  • Net adjustment must equal zero

  • Do not use adjustments as a substitute for returning excess cash

  • Do not use adjustments to close out a year or bring your school’s cash balance to zero


Drawdown adjustments1

Drawdown Adjustments


Enter amount of adjustment

Enter Amount of Adjustment


Electronic refunds

Electronic Refunds

  • Posts to G5 within two business days

  • Schools control the process

  • Schools direct from which bank account the money is refunded

  • Multiple refunds on one screen and at one time

  • Electronic processing reduces human error and delays


Set up refund bank account

Set Up Refund Bank Account


Related sessions

Related Sessions


Need funding help

Need Funding Help?

  • COD School Relations Center

  • URL: http://www.cod.ed.gov

  • E-mail: [email protected]

  • Phone: Grants: 1-800-474-7268

  • Phone: Direct Loans: 1-800-848-0978

  • Campus Based Call Center

  • URL: http://cbfisap.ed.gov

  • E-mail: [email protected]

  • Phone: 877-801-7168

  • G5 Help Desk

  • URL: http://g5.gov

  • E-mail: [email protected]

  • Phone: 1-888-336-8930

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Contact information

Contact Information

Anthony (Tony) Laing

Director, Internal Controls Division (ICD)

[email protected]

202-377-3112

LaShae Jones

Chief, Funds Control Branch (ICD)

[email protected]

202-377-3121

Michael Falby

G5 Customer Service

[email protected]

202-245-7190


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